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Back to drawing board for 75% tax
Constitutional court throws out headline 75% income tax rate on millionaires - deeming it to be unfair
THE government has pledged to redraft and resubmit a law imposing a 75% income tax rate on earnings over €1million, after France's constitutional court ruled that it was unfair.
The Conseil Constitutionnel said the temporary two-year rate was unconstitutional because it was applied on an indvidual basis, whereas other personal tax is based on households.
For example, a household with one person earning €1million and the other adult on minimum wage would be hit by the 75% tax - but a couple each earning €950,000 would not be affected.
The new top rate of income tax would have applied to an estimated 1,500 people - but some have left France in protest.
Actor Gerard Depardieu relocated to Belgium - but he said the decision to overturn the tax rate would not affect his move.
He told Le Parisien: "I don't care about any of this. This changes nothing."